WEBINAR |

Claiming Input VAT on ‘Entertainment Expenses’

Lessons from Aveng Mining Shafts & Underground v CSARS

15 May 2025
11:00 am - 12:00 pm SA Time
Free
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Claiming Input VAT on ‘Entertainment Expenses’

In the recent case of Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the Supreme Court of Appeal (SCA) delivered a strong message to businesses: input VAT deductions require a clear legal foundation. Aveng Mining attempted to claim nearly R17.5 million in input VAT for accommodation and meal expenses provided to employees working in remote mining locations. The company argued that these expenses were necessary for operational continuity.

However, the SCA ruled in favour of SARS, holding that such expenses did not qualify for input VAT deductions under the VAT Act. The Court emphasised that operational necessity alone does not meet the statutory requirements – expenses must be directly connected to the making of taxable supplies and not constitute private or exempt use.

This judgment is a caution to all businesses: input VAT claims must align with the VAT Act’s provisions, regardless of how essential the expense may seem from a business perspective.

Key Topic Areas of the presentation:

Analysis and Discussion of the Supreme Court of Appeal’s Judgment in Aveng Mining Shafts & Underground v CSARS.
Provisions of section 17(2)(a) of the Value Added Tax Act, No. 89 of 1991.
Burden of Proof and Documentary Requirements
Practical Steps to Correctly Claiming Input VAT

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MEET THE SPEAKERS

Richan Schwellnus

Tax Attorney,
Admitted Attorney, BCom (Hons), LLB, General Tax Practitioner (SA)™ (SAIT)

Richan Schwellnus is well-versed in advising both individual and corporate clients on cross-border transactions, relocations and acquisitions. Having completed BCom Honours and LLB degrees, Richan is currently reading towards his LLM Tax Law degree from the University of Pretoria. Richan specialises in corporate structuring for South Africans returning home, to ensure local and international tax compliance.

Lara Ferreira

Accountant

Lara Ferreira is an experienced accountant at Tax Consulting South Africa and has over six years of expertise in the accounting industry. She has worked with a range of medium-sized local firms, developing a strong foundation in taxation, with a particular focus on Trusts and VAT compliance. She holds an Advanced Diploma in Business Management and continues to stay updated on the latest developments in tax legislation. At Tax Consulting South Africa, Lara plays a key role in managing a diverse portfolio of clients, with responsibilities spanning from VAT submissions, Trust accounting and compliance, as well as corporate tax planning and returns.